Is Florida A No Fault State?

Is Florida A No Fault State?

A lot of people are not knowledgeable about the type of insurance they have. This is because a lot of industries such as Insurance Companies prefer their customers to be kept in the dark in dealing with the products they sell. In carrying insurances, you need to know the levels of coverage of those insurance and how can they be covered by those insurance. Florida is known as a No Fault state and this is somehow concerning the insurances of their people.

In Detail: Is Florida A No Fault State?

Is Florida A No Fault State

Florida as a No Fault state means that the Florida Legislature and the Insurance Companies had an agreement. This agreement is to cover a certain level that can make their customers insured if they were involved in an accident regardless of whose fault the accident was. On the other hand, the victim of the accident can only pass a claim to the person who was at fault only if the victim was injured permanently. I will give more details as you go on reading this article.

If ever you were involved in a car accident or any other automobiles, you will automatically thrust yourself in a legal web. There are several laws and also several provisions wherein your accident and all the injuries due to the same accident were subject to. You can look for an attorney to talk or discuss about all the details about your potential claim. Be sure to hire someone that can explain all possibilities about the issue.

There are also a lot of states that are known to be No Fault. This includes the District of Columbia, Hawaii, Kentucky, Kansas, Massachusetts, Minnesota, Michigan, New Jersey, North Dakota, New York, Utah and Pennsylvania. No Fault insurance covers all your medical bills and also lost earnings. However, different states do not have the same law. Other No Fault states are limitless regarding the coverage benefits from the insurance company of your car or any other automobile. On the other hand, some states don’t have any limit regarding the coverage of the benefits.

One thing that is very important to know about a No Fault state is that personal injury includes pain and suffering compensation. However, you can’t bring any claim regarding personal injury damages if your medical bills did not reach a given level (depending on your state) or you acquired a very serious injury from the accident. Other states require a medical bill higher than $3,000 or if you are suffering from a broken bone because of the automobile accident.

The term for the coverage that is mandated for all Insurance Companies is called PIP or Personal Injury Protection. The claim includes your insurer to pay all your medical bills and will also include the reimbursement of your lost earnings. The amount of reimbursement of your lost earnings should equal your state’s no fault limit or your claim, whichever is lower. In addition, there are states that have two types of medical bill limit. If ever the victim has a health insurance, the No Fault insurer needs to pay a small amount of the medical bill of the injured victim. Also, you need to remember that the claim only covers the same amount with your state’s No Fault limit, meaning if you have a medical bill higher than the No Fault limit of your state, you need to pay for the remainder. It is a good thing if you have a health insurance because they will pay for that remainder. If you are also on a health insurance program run by your state through Medicaid or a Medicare, those entities will be in charged in paying the remainder. If you have other health care providers you can workout payment arrangements that can aid you with your medical bill.

You may consider knowing the situation wherein the No Fault claim will work. I will give you an example case for this: Supposing you were involved in a car accident and you were not at fault, meaning you were the victim. You don’t have a health insurance and in your state, if the victim has no health insurance, the state has a No Fault limit of $5,000 for medical bills (if this is the situation the medical bills No Fault limit for persons with health insurance is usually $10,000). The insurer covers to pay 3 quarters of the victim’s lost earnings, the state only requires the no fault insurer to pay up to $10,000 of the victim’s lost earnings. Also, your state is requiring $10,000 worth of medical bill if you are injured in an automobile accident before you can make a claim. For example you have a medical bill worth $20,000 and lost earnings of $12,000.

If this is your case, your insurer should pay $10,000 to your medical bill because it is your state’s No Fault limit. The remaining bill should be paid by yourself because you don’t have any health insurance. $7,500 will be received from your car insurance company to cover your lost earnings. $7,500 is derived by computing for the first three quarters of your lost earnings. Since the No Fault limit for your lost earnings is only $10,000 the insurer should reimburse your $7,500 as payment for your lost earnings. In this example, you have a $20,000 medical bill which was not fully paid by the insurer but you reached the limit to bring a claim against the person at fault. The remainder which is $10,000 can be paid by filling a personal injury claim against the negligent driver.

Your state will require you to coordinate with your insurer if ever you want to file a claim. Your state law will also require you to pass recorded statements. Other states also require a victim to be checked through medical examinations. The physician is someone hired by your No Fault insurer. It is very important that you follow what the state requires because unable to complete this requirements might result to the termination of your No Fault benefits. I suggest that you hire you own attorney that focuses on car accident cases so you can have legal advice.

Category Law & Rules